Northwestern Earnings: Here’s Why Shares are Up Now

Northwestern Corp. (NYSE:NWE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.26%.

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Northwestern Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.77% to $1.01 in the quarter versus EPS of $0.88 in the year-earlier quarter.

Revenue: Rose 1.27% to $313.02 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northwestern Corp. reported adjusted EPS income of $1.01 per share. By that measure, the company beat the mean analyst estimate of $0.93. It missed the average revenue estimate of $318.5 million.

Quoting Management: “Our first quarter net income was $5.9 million better than the prior year as we continued executing our strategy to add natural gas supply for customers and experienced improved retail and transmission volumes. This was partially offset by higher operating expenses (particularly related to our Distribution System Infrastructure Project), higher property taxes and increased depreciation expense,” said Bob Rowe, Chief Executive Officer. “Our continued focus is to remain committed to funding DSIP and continuing our significant investments in our base electric and gas transmission and distribution systems while we seek additional regulated energy supply resources to provide our customers long-term price stability and resource adequacy.”

Key Stats (on next page)…

Revenue increased 11.49% from $280.77 million in the previous quarter. EPS increased 40.28% from $0.72 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.32 to a profit $0.33. For the current year, the average estimate is a profit of $2.47, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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